Both state and federal governments have regula­tions with respect to the amount of information that pharmaceutical companies have to provide about the health risks of their products. A case brought before the Supreme Court in 2008 centered on whether a company could be sued if it had complied with the federal regulations but not a particular state's regulations. Using the theory of fiscal federalism as a framework, discuss whether federal or state governments should set consumer-safety regulations.

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Federal safety regulation may impart economies of scale or a
lower cost of compliance than state-by-state systems for
companies. It would also impart a lower cost of
policing. There is little reason to expect that states would
have consistently different populations so that the preferences for
consumer safety would be different.